ZOOMING IN ON THE REINVENTION OF RETAIL - 2020 UK Retail Chair Survey: The COVID-19 Crisis: A global pandemic accelerating digital transformation ...
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2020 UK Retail Chair Survey: ZOOMING IN ON THE REINVENTION OF RETAIL The COVID-19 Crisis: A global pandemic accelerating digital transformation, and all on the eve of our exit from the EU – tense times for retail…
INTRODUCTION
BY SARAH LIM
When the chimes of Big Ben rang in the New Year on 1 January,
no one was expecting the world economy to be blighted by the
COVID-19 pandemic. The virus, along with the Government
response to containing it, has disrupted and shaped the retail
sector profoundly this year. And the changes will reverberate
through the industry for years.
In our last Chair Report, the outlook Of course, there are companies in
for the retail sector looked challenging, the middle, which saw smaller changes
SARAH LIM
to say the least. Chairs were to their turnover, but they seem to be Managing Director
concerned about the disruption that far fewer in number. Particularly, those & Sector Lead,
Retail, EMEA
a disorganised exit from the EU might in high street fashion or department Korn Ferry
create. On top of that, a number of stores which have never experienced
high street retailers were entering such a severe crisis, even during
Company Voluntary Arrangement wartime. Some have seen demand
(CVA) processes as consumers shifted drop precipitously and have had to
away from the high street in favour make difficult personnel cutbacks,
of online shopping. At that time, those while at the same time having to
challenges looked daunting even to rethink how they will operate in the
the most battle-hardened executives. future. Others haven’t survived. And
But then 2020 brought us the yet, that story is not universal. Some
COVID-19 pandemic, which made companies have seen burgeoning
many past worries pale in comparison. demand for their products and
During the earlier part of this year, services, particularly those in grocery,
non-essential retailers faced DIY, home and crafting, which has
Government-mandated closures, resulted in shortages of product supply,
with significant impact on revenue a need to hire people en masse and at
and shareholder value. Millions of speed; and part-repurposing of stores
workers were forced to stay at home to become DCs (distribution centres).
on taxpayer-financed furlough pay,
Many Chairs were impressed by
and the sector saw significant job
the Government’s rapid response
losses, as companies looked to
to the pandemic in the early days,
accelerate digital transformation,
but have been increasingly impatient
significantly reduce or eliminate
as time has moved on. They were also
stores, and streamline structures
generally impressed with how the
and people to take out cost.
banks responded to the need for
In many ways, the retail sector has additional financing, although some
seen itself bifurcated. A substantial mid-cap businesses found it harder
portion of the sector seems to have to access funding than either their
prospered, while another substantial larger or smaller counterparts.
portion seems to have suffered.
3
TOP FINDINGS
Perhaps surprisingly, for a significant • COVID-19 has bifurcated the retail
minority of survey participants, sector, with the gap between the
planning for Brexit was not high on winners and losers becoming ever
the agenda. That is to say, a substantial more stark. Online retailers have
number of the Chairs interviewed now continued to surge ahead of their
felt that a No Deal Brexit was already bricks and mortar counterparts.
an inevitability, and that other worries
• The crisis has forced physical retail
relating to coping with fluctuating
to accelerate the channel shift to
consumer demand and constantly
digital: what would have taken
changing Government guidelines in
years previously has been enacted
response to the pandemic were far
in months.
more of an immediate priority.
• The Government’s early response
“10 Years Disruption in 10 Weeks”
to the crisis was well received but
The major change of 2020 is how patience is wearing thin.
COVID-19 has upended the way
• The banks responded well to
retailers do business. Specifically, it has
both bigger businesses and
accelerated the digital transformation
smaller companies, but some
in retail by a decade. Some of those
in the middle found it hard to
companies that were slow to the party
access the funding needed.
have since jumped into action at
lightning speed. Others took novel • The future of work will look
steps to overcome new obstacles different. Post pandemic, more
to continue to trade. The fleet-of-foot flexible working will be the way
have flourished as a result. In short, of the future.
it’s been a year of immense challenge
and huge change. With a second • Many are already resigned to the
lockdown upon us, that’s something prospect of a No Deal Brexit and
that will likely be with us for the are frustrated by the lack of visibility
foreseeable future and time to prepare for an exit.
• Innovation wins through. Some
fascinating case studies of agility,
innovation and social conscience
were borne out of the crisis.
4 UK Retail Chair Survey
FOREWORD:
BY TONY DENUNZIO
A ‘Perfect Storm’, ‘Unprecedented’, ‘Extraordinary’ - whatever words
one chooses to describe the coronavirus pandemic on the nation’s
health and wealth, we as retailers have had to cope with a seismic
change to our industry over the past nine months. And while ‘change
is the only constant’ is an oft-used adage to inspire innovation,
for most retailers the pandemic is the biggest structural change
in a lifetime. They have been forced to adapt at lightning speed
to survive and thrive, to not one but now two national lockdowns.
TONY DENUNZIO
This year’s Korn Ferry Retail Chair from scratch, others tripled online Chair of the British
Retail Consortium;
Survey covers a number of important deliveries, while some turned stores Deputy Chair Dixons
topics, including the pandemic’s into fulfilment centres or created Carphone; formerly
Pets At Home
impact on trading, how retailers have virtual shopping channels. Lastly,
dealt with the crisis, the accelerating I would like to celebrate the retail
decline of the high street, the explosion leaders and our frontline colleagues
of online, the structural issues of the who have done an amazing job in
real estate market, how Government leading the response and serving
and banks have responded and let’s customers. Our CEOs and their teams,
not forget the continued uncertainty mainly working remotely, have reacted
around Brexit. with unprecedented speed and
decisiveness in managing changes
I would like to focus on three
to safety needs, customer behaviour,
aspects of the survey and retailers'
colleague working patterns, store
responses that demonstrated both
operations, e.commerce, supply chains,
the adaptability of our industry and
financing... The list is long! Store and
its desire to do the right thing.
warehouse colleagues, who could not
Firstly, there was the response to the
work from home, have continued to
community needs of the country and
deliver excellent service to customers
our health workers in particular.
in a safety-enhanced environment.
Whether it was food deliveries and
helplines for the vulnerable, special Sadly, the end of the pandemic is
discounts for NHS workers, reserving not yet in sight and the Brexit trade
electronic products for the elderly and deal has not been announced. But
lonely, or restocking supply chains what the past nine months have shown
after the initial panic buying, retail is the ability of retail to respond to
definitely rose to the challenge of a crisis in a socially responsible way
feeding and supplying the nation. and adapt business models with agility
Secondly, we saw businesses adapting and creativity, through the leadership
their business models to deal with the of our teams and the passion of our
closure of stores/head offices and the frontline colleagues.
rapid growth of e.commerce. Some
companies set up online channels
5
ABOUT THIS STUDY This is the 10th Korn Ferry UK Retail Chair Survey. It presents the views of over 40 retail Chairs who lead the boards of the some of the largest UK-headquartered retail companies. These companies employ a combined workforce of more than two million people with annual revenues totalling more than £150 billion. These Chairs represent a wide cross section of all sub-sectors of Britain’s retail industry. This study is based on analysis of face-to-face meetings, video interviews and detailed surveys. The majority of respondents are listed at the end of this report. We conducted our research in the autumn of 2020. The charts are based on online survey responses. Some questions explored the Chairs’ views on the outlook for the sector and the broader economy. Others focused on their specific businesses or issues that are pertinent to the industry currently. As you would expect, this year our survey and interviews focused on matters related to COVID-19, including the impact of lockdowns, the disruption of supply chains, the response from Government and banking support. We also discussed standout examples of innovation in the industry that was prompted by the crisis, as well as the outlook for the next six to 12 months. You’ll see that some of the Chairs’ comments are presented with attribution and some without. Those without attribution allow for more candid comments to be made about the sector in general, and their own companies in particular. Some of the individuals were happy to be on record on some topics while remaining anonymous on others. That flexibility adds to the deep texture you’ll find in this report. 6 UK Retail Chair Survey
THE CURRENT STATE OF
BUSINESS TRADING
In the simple terms, the COVID-19 pandemic The contrast hasn’t just been between those
has divided the retail sector into haves and firms heavily reliant on online trade versus
have nots. Think of it like a barbell with those that operate primarily on the high
a large portion of winners at one end and street. Business success in this period has
an equally
our business(es) large portion of losers at the other,
trading also been dependent on the particular
but with far fewer companies in between. category in which companies operate as
y, in comparison to this
well as their specific product offerings.
t year? More than one third (37%) of companies
Food retail, furniture, DIY have all traded
surveyed say they have seen a considerable
well verses department stores and many
nsiderably increase
lower in revenue compared to last year. fashion retailers, which have suffered.
While the same percentage of firms (37%)
ghtly lower
say that they have suffered a considerable The companies that have seen a considerable
out the same
decrease in revenue. The remainder of increase in revenue were typically in the home
mewhat higher
companies (around 26%) have either seen furnishings/DIY retail, grocery and wine
nsiderable no
increase
change or modest decreases or increases sectors and the online retailers. They included
in turnover. companies such as Ocado, ASOS, Kingfisher
Group, B&M, AO World, Global Fashion Group,
WM Morrisons, Furniture Village, Direct Wines,
HOW IS YOUR BUSINESS(ES) TRADING
Wickes, Topps Tiles, Hobbycraft and Blue
CURRENTLY, IN COMPARISON TO Diamond Garden Centres Group.
THIS TIME LAST YEAR?
Companies that saw a drop in revenue
37% were typically those that rely heavily on
CONSIDERABLE
37% INCREASE
retail footfall, and/or those in department
CONSIDERABLY stores, high street fashion or luxury goods
LOWER
such as New Look, Boden, Burberry,
Fenwick’s, Dune, Charles Tyrwhitt, Value
Retail, Harrods, Selfridges, Mulberry and
Superdry.
Put simply, the pandemic has created
stories of great success and tales of
enormous challenge.
6%
14% ABOUT
SOMEWHAT THE SAME
HIGHER 6%
SLIGHTLY
LOWER
7
WHAT THEY SAID
Matt Davies, N Brown Group and Hobbycraft
“ Consumer behaviour is always changing.
But the big thing is that COVID-19 has really
put another rocket under the shift to digital
and that isn’t going to change. Bricks-and-
mortar businesses will be challenged more
quickly, and digital businesses will beat
a path to profitability quicker. That will
MATT DAVIES provide challenges for part of the retail
N Brown Group;
Hobbycraft
economy, but not for others.”
Geoff Cooper, AO World
“ We have seen a considerable increase
in revenue this year. The pandemic resulted
in us having an influx of new customers
who haven’t used AO in the past, and
research has shown we will hold onto
GEOFF COOPER
AO World
JULIAN GRANVILLE
these customers.”
Boden;
Monica Vinader
Julian Granville, Boden; Monica Vinader
“ Boden sales fell very sharply at the
beginning of lockdown. It was a huge
advantage not having shops but
fundamentally what we sell a lot of is
work wear, occasion wear and holiday
JIM HODKINSON
wear. You can’t pivot to become
Furniture Village a yoga brand overnight.”
Jim Hodkinson, Furniture Village
“ Trading is up 90%, partly as a result of
people spending money on home, but also
as a result of some of our competitors falling
into administration. We’ve also attracted new
young customers, which has been really
good. We’re investing more in digital and
taking on more staff. We are feeling
optimistic in our sector, and are expecting
significant growth over the next 12 months.”
8 UK Retail Chair Survey
Gerry Murphy, Burberry was a rapid shift to a lower risk operating
“ As a global brand, the revenue impact of model – marketplace and consignment,
COVID has varied enormously by market whilst extending warehouse capacity and
as different countries have coped variously implementing COVID safe practices.
with the pandemic domestically and We achieved in three months what was
restricted travel and tourism. In China the expected to take considerably longer,
luxury business has bounced back strongly: in our pivot to marketplaces.”
the Chinese aren’t travelling and they are
Simon Burke, Blue Diamond Garden Centres
shopping at home. Korea also came back
“ Trading since the end of lockdown is actually
quickly and Japan is edging back to
the best I have ever seen. Completely
normality. Other Asian markets and Europe
extraordinary. Got the figures in from last
remain difficult with the lack of Chinese and
week and it shows no sign of slowing.”
other travellers but we have recovered some
of those sales in China. Digital has been
strong everywhere, accelerating the
longer term trend.”
Nick Wheeler, Charles Tyrwhitt
“ There is a shift from Formalwear to
Casualwear, but we will continue with
formal shirts, there will still be a market
out there. If we are to sell work shirts, then
we just have to be the best work shirt shop
out there. You’ll never be naked on Zoom.
We will take share from others who are
no longer trading or shrinking. It is hard GERRY MURPHY
Burberry
to survive if you’re PE backed and laden
with debt.” CYNTHIA GORDON
Global Fashion Group
Steve Barber, Fenwick
“ Revenues have been considerably lower
than last year. Footfall in London is dead.
Department stores still have to redefine
themselves for the future; those earlier
NICK WHEELER
into online will fare better.” Charles Tyrwhitt
Cynthia Gordon, Global Fashion Group SIMON BURKE
“ As an international online fashion retailer, Blue Diamond
Garden Centres
we’ve seen a considerable increase in
revenue on last year. Our primary focus
STEVE BARBER
Fenwick
9
nticipate hiring more staff
RETAIL’S RESPONSE
xt 6 months?
TO COVID-19
nticipate hiring more staff
xt 6 months?
The COVID-19 pandemic and resulting
Government restrictions have forced changes
DO YOU ANTICIPATE HIRING MORE 37%
in the way companies do business, in ways
STAFF IN THE NEXT SIX MONTHS? YES
never seen before.
37% REWORKING THE WORKFORCE
YES
Perhaps the most notable actions reported
in the news were the huge numbers of
employees who were furloughed, laid off,
63%
NO or hired during the early days of the pandemic.
On the bright side, food retailers such as
Tesco and WM Morrisons each recruited
63% around 40,000 – 50,000 new employees
NO
alone, to cope with employees who were
shielding, increased consumer demand,
and the switch to online shopping. Tesco saw
nticipate reducing the a doubling in demand in home delivery and
e in the next a significant recruitment drive for new drivers,
DO6YOU
months?
ANTICIPATE REDUCING THE
most of which have since been retained as
WORKFORCE IN THE NEXT SIX MONTHS?
permanent colleagues. Conversely, those in
nticipate reducing the areas such as fashion, footwear, department
e in the next 6 months? 46% stores and travel retail have seen significant
YES
reductions in their workforce. In other words,
although the entire country was, and still is,
hit by the pandemic restrictions, there was
46% wide variation in retailer response and
YES
performance, category by category.
54%
NO
54%
NO
10 UK Retail Chair SurveyWHAT THEY SAID
Adam Crozier, ASOS
“ Lots of companies in retail have had to think
very hard about the size of the workforce
they really need, as they have actually been
carrying a lot of costs/inefficiencies in the
organisational structures that have built
up over time.”
Susanne Given, Made.com; Hush Homeware
“ It’s super clear that different skills are
required in the boardroom now. Some
boards have demonstrated agile thinking
and some haven’t.”
Nick Wheeler, Charles Tyrwhitt
“ In merchandising, it is not much harder
to order a million shirts than it is to order
a thousand, but before you know it, you
have a huge team ordering a million shirts.
You could have just one person. Almost!
We realised in lockdown we had too many
people. You need small efficient teams
to make a business hum. We’ve reduced
ADAM CROZIER
our headcount and outsourced in non- ASOS
core areas and we will come out of this
a better business.”
NICK WHEELER
Charles Tyrwhitt
SUSANNE GIVEN
Made.com; Hush
Homewear
11THE FUTURE OF WORK – Most saw that post-pandemic, while not fully
VIRTUAL VS OFFICE WORKING replacing face-to-face board meetings, a more
flexible approach with some virtual and some
Video meetings using Zoom or Microsoft
in-person meetings would allow greater
Teams have become as common as coffee
flexibility/efficiency and the opportunity
breaks were in the office as recently as a year
to reduce travel time and costs.
ago. Long-standing teams who have worked
together productively for years have adapted When it came to the wider workforce and
to remote working and video conferencing. head office working, the Chairs responded
The pandemic has transformed views on with more mixed views. All non-essential
virtual
What changes working.
have you / Gone
will youis the notion that retailers with physical stores saw their
working from home is
put in place as a result of COVID19? ‘shirking from home’. shopfloor staff returning to work from
July onward, prompting a call for solidarity
Overwhelmingly, our Chairs have been
Other (please state) by some Chairs, in encouraging head office
converted to the view that for boards,
Extra safety measures / equipment staff to return to the office too until new
working from home can be just as efficient
Extra security lockdown measures were announced
as sitting in an office. They cited the ease and
Opening new warehouses again for November.
speed with which board meetings were run
Opening new stores
during the critical early phase of the On the subject of productivity, the Chairs
More flexible working
pandemic, with board meetings occurring far were divided on whether they felt productivity
Full home working
more frequently, with far closer dialogue with was compromised by home working. Some
Reducing store estate
management, with crucial decisions being felt that there had been no negative impact
Downsizing office space
made ‘in real time’. at all, versus others who felt intuitively that
productivity was affected, although it was
hard to measure in output terms.
WHAT CHANGES HAVE YOU / WILL YOU
Most Chairs cited some of the disadvantages
PUT IN PLACE AS A RESULT OF COVID-19?
of virtual working. Notably, these included
how it stifled spontaneity and was difficult
MORE FLEXIBLE WORKING
to foster the same level of creative thinking
92%
REDUCING STORE ESTATE
across teams, and – particualrly in fashion –
83% how it was much less efficient to discuss
EXTRA SAFETY MEASURES / EQUIPMENT product and sign off range reviews at a
67%
distance, without the ability to look and feel
DOWNSIZING OFFICE SPACE
67% product together. Others cited the potential
FULL HOME WORKING mental health issues for those living either
8% alone or in cramped living conditions without
OTHER (PLEASE STATE)
proper access to good working conditions.
8%
Many talked about the challenges of
EXTRA SECURITY
8% onboarding new team members, training/
OPENING NEW WAREHOUSES mentoring more junior staff, and the fact
0% that it was harder for companies to foster
OPENING NEW STORES
corporate culture and camaraderie.
0%
12 UK Retail Chair SurveyA number of Chairs shared some of the
practical challenges that a return to office
working presented, notably sufficient office TONY DENUNZIO
British Retail Consortium;
space to socially distance, the limits on Deputy Chair Dixons
Carphone; formerly
the number of people in a lift at any one Pets At Home
time and the ‘fear factor’ of staff in using
public transport.
GEOFFREY COOPER
The ‘work from home’ phenomenon which AO World
would have been viewed as lunacy by some
a year ago, has been driven by the need for
STUART ROSE
people to socially distance to stop the spread Ocado
of the virus. And yet now, most see merit formerly Fat Face
in a ‘new normal’ that will see a move to
permanent flexible working in the future, with
a split week between time spent between the BEN LEWIS
office and home, and a likely downsizing or River Island
repurposing of office space as a result.
WHAT THEY SAID
Tony DeNunzio, BRC; Dixons Geoffrey Cooper, AO World
Carphone; formerly Pets At Home “ Productivity has gone down. I think that’s
“ The most important lesson learnt through situational and not motivational or lack of
this crisis has been ensuring that colleagues effort. Remote working will become part
and customers stay safe. Health and safety and parcel of how companies organise
has become the the number one priority themselves. It won’t be all or nothing. I think
for customers and colleagues. Secondly, all companies will reduce the extent that
we have learnt about changing customer people come into the office every day and
behaviours, new working practices, the all companies will reduce the size of their
need for greater online investment and offices, so office space will go down.”
stronger capital structures”.
Ben Lewis, River Island
Stuart Rose, Ocado; formerly Fat Face “ With working from home, you get the
“ I have a strong view that we need to get benefit from productivity and structure,
people back into work. It is more efficient. but you lose your peripheral vision.
Seeing how your boss negotiates, training It’s two dimensions in the literal sense.
and developing young people as managers In the future, the office will have a purpose
of the future, developing/making decisions – that of coming together - for ideas
on product – these are all things that are generation, relationship building and
crucial, and can’t be easily done from home. deal making – where physical and personal
I’m truly disappointed there isn’t more noise contact matters. If you are sitting there
from business leaders. I’d like to see them just doing emails and calls, then it
show a bit more leadership and call for doesn’t matter where you are.”
people to get back into the workplace.”
13Richard Pennycook, Howdens
“ In the early stages we were very impressed
DEBBIE HEWITT with productivity at home. It was as high
The Restaurant Group;
White Stuff
as productivity in the office. As time has
gone on, we have noticed that it’s become
more strained.”
RICHARD
Nick Wheeler, Charles Tyrwhitt
PENNYCOOK “ Working from home is difficult. I don’t believe
Howdens
it really works. You can get by, and it might
even work well for a while, but if you want a
NICK WHEELER
Charles Tyrwhitt truly great business, then your people must
interact, you need people sitting next to each
other; learning from each other – young from
old (and vice versa!). It’s very one dimensional
JULIAN GRANVILLE
if you only ever see others on Zoom. And
Boden; Monica
impossible to be constantly learning.”
Vinader
Julian Granville, Boden; Monica Vinader
TONY DENUNZIO
British Retail Consortium; “ With staff working from home there was
Deputy Chair Dixons
Carphone; formerly no time commuting, better work/life balance
Pets At Home
and in certain functions even an increase
in productivity. But this isn’t binary: in many
areas you lose a great deal from the limited
interactions. Virtual working won’t work
in the long run for most.”
Debbie Hewitt, The Restaurant Group; Tony DeNunzio, BRC; Dixons Carphone;
White Stuff formerly Pets At Home
“ Flexible working is the standout lesson learnt “ Overall, working from home has been
over the past six months. We see three days positive in terms of total productivity and
a week in the office and two days a week colleague reaction. But it doesn’t work for
working from home likely to be the future all colleagues, as some want to be in the
state and in the immediate future on an office and interacting with others. In the
A and B rota; it’s highly unlikely that we future working from home and in the office
would go back to everyone working five will develop into a hybrid model. I think one
days a week in the office. Even so, I’m a of the difficult things is it really does blur
firm believer that it’s limiting to lead a team the lines between family and working life.”
of people entirely from the sofa and equally,
from a solidarity perspective, it doesn’t
feel right to expect all store colleagues to
be out there working and to have head office
working from home. There will need to be
a balance to enable us to combine both. I
think the innovation and creativity required
for a retailer to remain relevant will require
people to meet face to face.”
14 UK Retail Chair SurveyHIGH STRESS ON THE
HIGH STREET WHAT THEY SAID
The pandemic resulted in the need for Angus Porter, Kingfisher Group; Angus
dramatic change, at pace, with retailers having Porter; Direct Wines; McColl’s Retail Group
to conduct full safety assessments prior to the “ We have 1500 stores today, with a plan to
reopening of shops. Stores introduced one- exit 200-300 small ones when leases expire.”
way routing, and social distancing rules, face
masks, and sanitisers and protective screens Simon Burke, Blue Diamond Garden Centres
for checkout staff. Some have seen a “We plan to invest more in stores and store
considerable change of the role of stores, upgrades because the underlying trends
to provide more of a fulfilment role, with for us are really strong.”
smaller store concept testing.
Nick Wheeler, Charles Tyrwhitt
The demand for at-home delivery has also “ All our shops are now open except for two
increased with social distancing rules making in the US; 42 in total. We don’t have so many,
visits to physical stores less appealing. In turn thank God! Sales are very variable. The City
that puts further pressure on retailers with and Manhattan are ghost towns. I visited our
high-rent properties in prime locations. Some City shops and there is nobody there. It’s
brands are taking their products direct to tragic. Shops need customers. Retail is tough
consumers, which is a double hit to retailers – footfall on the British high street has been
as it means that the offering from shops is falling for years. Luckily I started a mail order
smaller and revenue potentially suffers. business, which migrated easily to online.
As online sales grew, it became obvious
The long-term affordability or even desirability
that bricks-and-mortar retail would
of high-priced retail outlets in city centres is
correspondingly decline. Many stores will
being called into question. Why pay sky-high
close; not immediately with us, but we
rents for a shop on the high street when
will have fewer stores in a few years’ time.”
footfall has plunged? One of the beneficiaries
of the trend away from the high street is the
Richard Pennycook, Howdens
out-of-town retail park where there is more
“ Pre COVID, retailers with bricks-and-mortar
space for outdoor parking and for indoor social
stores were clinging onto last week’s sales
distancing. Of course, online retailers were
and needing to justify to their owners
already primed to benefit during the pandemic.
if like-for-likes were down 3%. That’s all gone
now; they have to reset their businesses
completely… They don’t have to worry about
whether to close a few shops; it is whether
they will ever reopen those 150
underperforming stores.”
ANGUS PORTER IAN DURANT SIMON BURKE NICK WHEELER RICHARD
Kingfisher Group; Angus Greggs; DFS Blue Diamond Charles Tyrwhitt PENNYCOOK
Porter; Direct Wines; Garden Centres Howdens
McColl’s Retail Group
15REAL ESTATE AND PROPERTY Out-of-town sites have been one of the clear
winners through COVID-19, in a surprising turn
The pandemic has further accelerated
of fortune for a format that had previously
thinking on real estate. It seems that nothing
fallen out of favour. A number of retailers like
is off the table, including discussions around
Matalan, Pets At Home and Hobbycraft have
head office space, stores and warehousing.
seen customers returning to these shopping
It seems that with more people working
destinations, given ease of parking, larger
from home, at least on a partial basis, less
format stores and therefore better social
office space will be needed. In particular,
distancing measures in place. Other winners
the net effect of this on city centre head
have been garden centres such as Blue
office locations could be significant.
Diamond and outlet shopping villages like
When asked strictly about the impact of Bicester Village, which have benefited from
COVID-19 on real estate needs, two thirds easy car parking and plenty of outdoor
(66.7%) of survey respondents said they spaces for better social distancing.
xpect to reduce
wouldyour store
reduce their office space, while four- Conversely, those in prime city centre
and if yes, by how much?
out-of-five (83%) will further reduce their locations such as department stores or luxury
pect to reduce your store
store footprint. Nine out of ten (92%) brands, or those with high exposure to travel
and if yes, by how much?
said they would introduce more flexible retail (e.g. airports, train stations) have seen
work conditions. a devastating impact on footfall and revenues.
Department stores such as Harrods and
Selfridges or food and beverage/travel
DO YOU EXPECT TO REDUCE YOUR STORE retailers like SSP, Pret, WHSmith, and
PORTFOLIO, AND IF YES, BY HOW MUCH?
35% Paperchase have been particularly hard hit.
YES
35% A number of Chairs talked about the need to
YES
repurpose stores to become delivery hubs
and the conversion of stores to store pick
operations – for example, Kingfisher Group –
65% to meet consumers’ shift to online. Many
NO
talked about the need to reduce the store
65%
NO estate even further and in some cases closing
all stores to move to a completely online
proposition. Some, like Furniture Village, B&M
8% 100% (ALL STORES
0%
WILL CLOSE; MOVE
TO ONLINE ONLY)
and Paperchase, talked about opening new
8% 76-99%
8% 100% (ALL STORES stores, while others like Global Fashion Group,
51-75% 0%
WILL CLOSE; MOVE 50%
TO ONLINE ONLY)
UP TO 10% AO World and Kingfisher described the need
0%8% 76-99%
31-50%
51-75%
50% for more warehousing.
UP TO 10%
0%
31-50% A significant number of Chairs spoke of the
urgent need for resolution of the ongoing
issues relating to rents and rates. They
expressed concern at the lack of Government
34% action, saying that healthy high streets
11-30% underpinned our way of life, and that central
34% and local Government, landlords and retailers
11-30%
needed to find a way to come together to
find a better way to invigorate them.
16 UK Retail Chair SurveyWHAT THEY SAID a CVA or a lease event to renegotiate rents
to lower market levels.”
Andy Cosslett, Kingfisher Group
“ Space is of great value. The store is a critical Susanne Given, Made.com; Hush Homeware
part of the future, but we see a revised role “ People shopping locally benefits the high
for the physical assets that will enable us to street in the long term as there will be a
transform stores into delivery hubs, in order different sort of high street in the future.
to meet changing customer demands.” The high streets we’ve had over the past
15 years; that’s finished. They will look and
Peter Bamford, B&M
feel different and more interesting. New
“ There are so many retail companies that
formats and new local business will become
will react to the COVID crisis by reducing
much more important. The high street will
their physical store space as they expand
be much, much smaller.”
their online channels, and companies in
other sectors will reduce office space, John Allan, Tesco
so there will be consequences within the “ Lots of retailers are sitting on excess space
property market. Conversely for us, we and we need to come up with more
see more retail sites becoming available, imaginative ways of dealing with it than the
and while our rate of store openings may current plethora of CVAs. That’s not fully
have slowed in the short term as a result played out as yet and we will see a lot more
of COVID lockdowns, we see this as action on that front next year”.
medium-term growth opportunity.”
Gerry Murphy, Burberry
Unattributed “ There is a whole body of work that needs
“ The Government needs to look long term to be done around the future function of
at the tax liability on retailers. Rates were town and city centres as places to work,
anarchic before, and going forward are shop and live. Without a strategy, urban
completely unfit for purpose. There’s a big centres will be devastated by changes to
wall coming forward on how you fund rates shopping and working patterns that are
for next year. This needs urgent resolution.” likely to be at least partially permanent.
We need a Plan B and we need to think
Tony DeNunzio, BRC; Dixons Carphone;
about it on a generational basis.”
formerly Pets At Home
“ There is a long-term issue on rates.
Everyone is very grateful for the one-year
holiday, but it won’t solve the structural
long-term problem of the disproportionate
rates burden on retail. Secondly, we need
a solution to retail rents. It shouldn’t take
SUSANNE GIVEN
Made.com; Hush
Homewear
JOHN ALLAN
Tesco
PETER BAMFORD
B&M
TONY DENUNZIO
ANDY COSSLETT British Retail Consortium; GERRY MURPHY
Kingfisher Group Deputy Chair Dixons
Burberry
Carphone; formerly
Pets At Home
17COMPENSATION CHANGES
It’s not only workplaces that are getting
upended by the pandemic. Many companies
WHAT THEY SAID
are rethinking their pay plans. Around two
thirds (66%) of the Chairs who responded Peter Bamford, B&M
to the survey said they’d be altering their “One of the trickiest things through all of
incentive programmes. One third said this was the management of our colleagues
they would not make any changes. and determining remuneration policy across
the spectrum of those shielding, furloughed,
In a number of cases, staff bonuses have with the virus and/or self isolating. B&M was
been increased and guaranteed, although in the 'essential’ retail category and we
generally at the shopfloor level, not for wanted to treat people fairly and support all
management. Board members and executive our colleagues without encouraging people
committee members in some cases took to stay at home without a cause. We paid
a paycut for a period. In other cases, the our staff a 10% bonus during the period if
targets for bonuses have been lowered, they were working.”
making changes
while to
yetcom-
another organisation introduced
n or incentive pro-
long-term incentive plans (LTIPs) for people Tony DeNunzio, BRC, Dixons Carphone,
? formerly Pets At Home
lower down the organization than previously.
“ At Dixons Carphone we extended our all
Put simply, there has a been a plethora of
colleague shareholder scheme with the
approaches to adjusting compensation
support of investors. For senior managers,
programmes, each of which reflects the
we set incentive targets after COVID
widely different individual circumstances
trading patterns had emerged.”
of the companies surveyed.
Geoffrey Cooper, AO World
“ We are really pleased that we achieved
ARE YOU MAKING CHANGES TO shareholder support for the new Value
COMPENSATION OR INCENTIVE
Creation Plan. It follows the principles that
PROGRAMMES?
management really should have to do two
34% things; (1) make the company more valuable
NO and (2) make it stronger. Making it more
valuable can ultimately be assessed through
the share price. Making the company
stronger can be assessed by looking at the
relations with key stakeholders – suppliers,
customers etc – so our overall philosophy
66% was that. The Value Creation Plan is long
YES
term and on top of current incentives (so
over and above what you would normally
see); it is very exciting for everyone working
at AO. When we first started thinking about
this, AO was worth about half a billion and
to get paid out it has to reach £4.5 billion.
18 UK Retail Chair SurveyIt pays everyone in the company; not
just management, taking into consideration
people’s continuation in the company,
and how long they have been there.
We also have a pot to fund new joiners.”
Unattributed
“ We are cutting incentive programmes
and focusing on cash.”
PETER BAMFORD
Andrew Higginson, WM Morrisons B&M
“ We haven’t made changes to main
board compensation, but staff bonuses
have been increased and guaranteed.”
Neil McCausland, Westerleigh
“ It’s too early to do it yet, but LTIPs
will probably be changed as a result TONY DENUNZIO
British Retail Consortium;
of COVID-19.” Deputy Chair Dixons
Carphone; formerly
Pets At Home
John Allan, Tesco
“ We gave frontline staff an extra 10% bonus
over the worst time as they had to work NEIL MCCAUSLAND
Westerleigh; Create
extra hard.” Fertility; formerly Karen
Millen, Sk:n, Joules
Susanne Given Made.com; Hush Homewear
“ We are considering introducing new types
GEOFFREY COOPER
of incentive schemes to drive motivation AO World
during this challenging time and 'even
greater ownership’ of business outcome,
and in some cases, in order to reward staff
salary sacrifices made during the early JOHN ALLAN
Tesco
stages of the pandemic.”
ANDREW HIGGINSON
WM Morrisons
SUSANNE GIVEN
Made.com; Hush
Homewear
1980%
NO
80%
NO
RETAIL’S DIGITAL TRANSFORMATION
ACCELERATES
e you a pure play online retailer? What % of your business was online
hat % of your business was online
pre-COVID19?
e-COVID19? ARE YOU A PURE PLAY ONLINE RETAILER? WHAT % OF YOUR BUSINESS WAS
ONLINE PRE-COVID-19?
20%
YES 37%
0-10%
0-10% 37%
11-20% 26%
11-20% 26%
21-30% 18%
21-30% 18%
11% 31-40% 11%
31-40%
41-50% 0% 41-50% 0%
51-75% 4% 51-75% 4%
76-100% 4% 76-100% 4%
80%
NO
u have the access to capital to sup- The ability to sell online has been a saving
Do you have the access to capital to sup-
his? (move to online retailing) grace for parts of the retail sector during
DO YOU HAVE THE ACCESS TO CAPITAL
port this? (move to online retailing)
TO SUPPORT A MOVE TO ONLINE RETAILING? the pandemic. While only one-in-five retailers
hat % of your business was online surveyed said they were pure play online
e-COVID19? retailers, overall, retailers have seen their
93% online sales increase dramatically since
YES
93%
0-10% 37%
the first lockdown. After the first lockdown,
YES
11-20% 26% 11.1% of the survey respondents said they
18%
21-30% did more than half of their business online,
31-40% 11%
compared with 7.4% pre-lockdown.
41-50% 0%
51-75% 4% 7% As one Chair put it, “If you haven’t got the
NO
76-100% 4% best systems, you’re dead. The big people
7%
with good IT systems will massively
NO benefit,
ave the expertise internally?
while the small ones will struggle.”
u have the access
DO YOU to capital
HAVE THEto sup-
EXPERTISE INTERNALLY? Still, while having a digital presence in itself
his? (move to online retailing) won’t guarantee success, it has become the
14% must-have capability for almost all retailers
NO
– perhaps with the exception of the
discounters. The good news is that the
93%
YES overwhelming majority of companies who
responded to the survey said they had the
capital (93%) and expertise (86%) to invest
more in infrastructure to facilitate online sales
86%
YES over the next 12 months. Such changes would
7% likely include increased personalisation in
NO
customer support, and Zoom appointments
with customers, as well as in-person virtual
shopping. A few companies had managed
to make such investments before COVID-19
you feel about Government sup-
to satisfy projected online demand, which
he industry during this period?
had subsequently manifested faster
than expected.
0%
6% POORLY
20 UK Retail
UNSUREChair Survey
SUPPORTED
12%
NOT WELLOne continuing worry from companies Andy Cosslett, Kingfisher
moving more heavily into online selling “ We invested heavily over the past few years
is whether the Government will introduce on digital. Recently we have been hooking
internet sales taxes or a tax on deliveries. it up, continuing to invest and change people
Such a move may be a jolt for consumers in it. During the crisis we saw a 200%
who have become used to free deliveries increase in demand, and we were able to
for many online purchases. The question is cope with it. These are big websites. Screwfix
whether consumers will take such a change is the sixth biggest trade website in the UK,
in their stride or respond by voting with bigger than John Lewis and Sainsbury’s.”
their feet.
Susanne Given, Made.com; Hush Homewear
“ We centralised our organisation following
COVID, reduced complexity, halted
WHAT THEY SAID recruited and created a new OD to fit the
Adam Crozier, ASOS circumstances. We are focusing on diversity
“ After three-to-four weeks into lockdown, and upskilling. Businesses broadly speaking
we saw revenues starting to grow again need higher calibre senior leadership, agile
and then within that, big variances, category thinking and critical thinking skills around
by category. To simplify, leisure went through financial and risk management. Empathy
the roof and going-out / formalwear went in leadership is crucial as staff become
through the floor." fatigued by present circumstances.”
Tony DeNunzio, BRC; Dixons Carphone;
formerly Pets At Home
“ At Dixons, in the early days of lockdown
100% of store sales transferred to online.
Now stores are open, our prediction is that
the revenue mix will move from 30%/70%
online versus stores to roughly 50%/50%”
MICHAEL RONEY
Next
Michael Roney, Next
“ Our online business has grown during the ANDREW HIGGINSON
WM Morrisons
COVID crisis. Fortunately, we have invested
ADAM CROZIER
heavily in our online business in recent years, ASOS
and we will continue to invest to meet the
anticipated growth. Our store estate will be
an integral part of this growth strategy.”
DEBBIE HEWITT
The Restaurant Group;
Debbie Hewitt, The Restaurant Group; White Stuff
White Stuff SUSANNE GIVEN
“Our online business has moved from 35% TONY DENUNZIO
Made.com; Hush
Homewear
British Retail Consortium;
to 50% of sales and we will invest more in Deputy Chair Dixons
Carphone; formerly
our systems to enhance the digital offer.” Pets At Home
21GOVERNMENT – A GOOD START,
FOLLOWED BY A STUMBLE
Overall, the Government’s response to the It was when the first lockdown started to
COVID-19 pandemic, particularly in the early get lifted that the messages coming from
ve the expertise internally?
days, was viewed favourably by Retail Chairs. the Government became unclear. Not only
More than four-in-five (82%) of the survey does the UK have four countries (England,
respondents said they felt well supported by Scotland, Northern Ireland and Wales) with
the Government efforts. Only around one in different sets of rules, but different areas
eight felt14%
not supported. This overwhelmingly of each country that were subjected to
positive NO
response comes largely from the different rules at different times. Sometimes
rapid early introduction of the furlough the rules changed rapidly. On top of that the
scheme, business rates and rent relief. All guidance on how companies and people
of these allowed companies and employees should behave was frequently ambiguous.
some breathing room and to stay solvent In short, the messages sent unclear or
while at the same time regrouping for a new possibly even unstable messages, which
normal. The Government measures led a large alone has been frustrating for business
percentage of retailers to take advantage of leaders, but which has also caused fear
86%
the furlough scheme, long before they knew
YES among consumers.
how their businesses would fare under
That fear and lack of stability is seen as a
lockdown. However, a number of firms
critical issue that political leaders need to
subsequently returned the furlough cash
tackle in the immediate future. The Chairs
they’d originally claimed because they found
believe that over the next six to 12 months the
that, ultimately, they didn’t need it.
Government needs to provide as much clarity
u feel about Government sup- and consistency in its policies as possible in
e industry during
HOW DO this
YOU period?
FEEL ABOUT GOVERNMENT order for businesses to plan ahead. Many are
SUPPORT FOR THE INDUSTRY DURING now extremely concerned about the business
THIS PERIOD? impact of a second national lockdown.
0%
6% POORLY
While the financial support from the
UNSURE SUPPORTED Government was widely welcomed by
12% business leaders, there is also a feeling
NOT WELL
SUPPORTED
that state support for weaker companies
doesn’t make sense. The thought broadly
boils down to the idea that keeping so-called
zombie companies on life support will cause
more issues in the longer term. Of course,
such decisions on which companies to save
82% and which to let fail are hard for anyone
WELL to make.
SUPPORTED
Finally, a number of Chairs said that providing
relief was the easy bit; at some point, all of
this funding would have to be repaid, and
by whom? The knock-on effect on future
22 UK Retail Chair SurveyANDY COSSLETT
generations would be considerable. Kingfisher Group
They spoke of greater concern for damage
GERRY MURPHY
done to business, and the fact that many Burberry
businesses will not be able to sustain
a prolonged second lockdown, or series
of lockdowns and now fear an exponential
rise in unemployment and reduced
consumer confidence and spending. ANDREW HIGGINSON
WM Morrison
SIMON BURKE
Blue Diamond
Garden Centres
WHAT THEY SAID
Andy Cosslett, Kingfisher
“ Financial response and support via various
additional benefit schemes and tax waivers
were crucial in the early days of COVID. Gerry Murphy, Burberry
Treasury’s speed to action, accessibility “ This is unprecedented territory; there was
and issue resolution was first rate and no play book to work from and there still
impressive. However, in terms of going isn’t. Early support for business and
forward, there is a lack of energy behind employees was decisive and critical but
the business agenda, with no sense of grip it can’t go on forever and the removal of that
and drive. It does not feel that business support is going to be very problematic
has a heavyweight champion in the for many retailers, The Government should
Cabinet at a critical time.” seize the opportunity for a fundamental
and coherent reform of retail taxation as
Unattributed
the pandemic has accelerated the structural
“ Government support has been appalling.
shift to digital and exposed the anachronism
Charisma and soundbites are no substitute
of retail business rates based on periodic
for competence.”
and retrospective real estate valuations.
Andrew Higginson, WM Morrisons Our world is changing too fast for this to be
“ Government support during the early stages a sensible and fair approach to taxing such
was good and DEFRA liaison with industry an important part of the economy.”
was very good. Supply chains remained
Simon Burke, Blue Diamond Garden Centres
intact and both industry and Government
“ I think that the early financial moves made
did well to ‘feed the nation’. Going forward,
by Government were very sure footed,
the views of scientists need to be balanced
so the furlough scheme and the rates
more and the Treasury needs to take a
relief were a huge help for retailers.”
decades-long perspective on how to pay
for it, otherwise, they’ll make it worse.”
23Dennis Millard, formerly Watches Stuart Rose, Ocado; formerly Fat Face
of Switzerland “The level of national debt is unsustainable –
“ The furlough scheme was groundbreaking at some point we will have to pay this
but did not take into account all back and retribution will come from the
circumstances, for example, the impact younger generation.”
on those of our colleagues whose pay
is largely commission based.” Susanne Given, Made.com; Hush Homewear
“ In some businesses, we took the furlough
Ben Lewis, River Island money to start with, but as soon as we
“ This is how I see it. Government launched realised we were getting tailwinds we came
a series of initiatives, like the job retention off it. Nobody took furlough when it wasn’t
scheme and rates holidays, to support required. That’s an important statement
businesses. In other words, they didn’t want to make.”
businesses or the economy to stop. They
wanted them to continue and they provided Peter Williams, Superdry; Sophia Webster
support to do so. I think the support’s been “ Going forward, the Government needs to
generally good, but it hasn’t been set in the think about job schemes for young people,
context of a broader strategy. It’s almost and retraining for older people who have
like building a bridge as you cross it.” been made redundant.”
Neil McCausland, Westerleigh; Create
Adam Crozier, ASOS
Fertility; formerly Karen Millen, Sk:n, Joules
“ I thought that in these difficult circumstances
“ We’re in for a world of pain and the
the Chancellor and Government acted
Government can’t keep propping up weak
positively and fairly well. There were issues
companies for ever. Let that market share
with every scheme they launched, but by
go to others. If you don’t, you’re just delaying
and large I think it was quick, it was big and
a problem – unless you believe you can live
clear and allowed people to move ahead
with never-ending debt.”
with some confidence. But as people started
to realise that it wasn’t a one-off fix and that
the issues were likely to return you got
people asking what would happen next?
Clearly there isn’t a magic money tree
and there will be a lot of pain down the
line and the Government will have to start
tapering back their support and then
drawing the line at some point. It’s a difficult
balance. I don’t envy them, and at some
point all of this will need to be paid for.”
Alistair McGeorge, New Look; The Retail Trust
“ You’ve got to give people confidence,
but the Government are very poor at
giving people confidence.”
24 UK Retail Chair SurveyGary Grant, The Entertainer
“ Going forward, it would be helpful if the
Government could review (1) business rates;
(2) bids costs, which have been coming
in over the year – they haven’t been reduced
or cancelled like the rates and full payment
is still being demanded, even though those ALISTAIR MCGEORGE
New Look; Chair of
communities have been closed down and The Retail Trust
savings should have been made; (3) some
sort of arbitration – that landlords have to
go through first before they can sue you
for back rent, before a court order is
NEIL MCCAUSLAND
issued. Many have ignored the Government Westerleigh; Create
Fertility; formerly Karen
guidance, that would be fair for all.” Millen, Sk:n, Joules
STUART ROSE
Richard Pennycook, Howdens Ocado
formerly Fat Face
“ The question for Government now is
whether they are going to let the market
decide. The market was going through big
transformation pre COVID-19. The online shift
DENNIS MILLARD
will continue, COVID has accelerated those Formerly Watches of GARY GRANT
Switzerland Group
trends by a number of years those trends The Entertainer
by a number of years. There’s not much the
ANGUS PORTER
Government can do about that, as hard as Direct Wines; McColl’s
that may seem. Natural forces are creating Retail Group
a shift. That said, there’s a clear impact on
place and jobs. If we see large swathes of
the high street really in trouble, and the
consequences are structural unemployment, BEN LEWIS
River Island RICHARD
then the Government may feel they PENNYCOOK
Howdens
have to respond.”
SUSANNE GIVEN
Made.com; Hush
Homewear
ADAM CROZIER
ASOS
PETER WILLIAMS
Superdry; Mister Spex
Gmbh; Sophia Webster
25VERY SUPPORT
41.2% SOMEWHAT SU
NOT VERY SUP
44.1% EXTREMELY UN
14.7%
BANKS GET A THANK YOU
0.0%
ALTHOUGH PRIVATE EQUITY-BACKED BUSINESSES
LEFT OUT IN THE COLD
How have your bankers behaved during
this crisis?
There’s an old quip from business people
that banks only want to lend money to
HOW HAVE YOUR BANKERS BEHAVED
people and businesses that don’t need it. DURING THIS CRISIS?
That reputation was further tarnished
during the financial crisis a decade ago. 0%
15% EXTREMELY
Clearly, during the first lockdown, a lot NOT VERY
UNSUPPORTIVE
SUPPORTIVE
of companies needed a lot of cash and they
needed it quickly. So how did the banks do
41%
in the eyes of the retail Chairs? Surprisingly VERY
SUPPORTIVE
well. The overwhelming majority (85%)
of Chairs said the banks were either very
supportive or somewhat supportive, although
notably some in private equity (P/E) backed
businesses found it hard, or even impossible,
to access financial support. 44%
SOMEWHAT
Access to cash from the banks was not SUPPORTIVE
a problem for larger companies, or indeed
smaller companies who took advantage
of the Coronavirus Business Interruption
Loan Scheme (CBILS). In both cases, Chairs
generally reported that the response was However, those backed by P/E investors were
quick and positive; albeit in some cases, not so fortunate, given that the rules around
Chairs spoke of the banks taking advantage CBILS excluded all P/E businesses. This was
How much of a prioritybecause
is planning
of thefor
Government’s test of solvency
of the situation and using the crisis to tighten
Brexit right now? – effectively a balance sheet test that meant
covenants or improve margins, which was
dimly viewed. if your business carried a significant level of
debt (as is often the case in P/E backed
assets) then you failed and could not take
advantage
24% of the loan schemes. 38%
NOT A KEY PRIORITY
PRIORITY
The banks providing interest rate holidays
during the most severe periods were received
well. There was a slight controversy that some
companies that were prospering during
lockdown, such as supermarkets, also
received this benefit, even if they didn’t
need the help.
38%
SOMEWHAT
OF A PRIORITY
26 UK Retail Chair SurveyWHAT THEY SAID Peter Williams, Superdry; Mister Spex
Gmbh; Sophia Webster
Simon Burke, Blue Diamond Garden Centres
“ The banks were not very supportive and
“ I would say full marks to most of the banks I
used the opportunity to tighten covenants.”
deal with, and you won’t hear me say that
very often. However, there is always the
Julian Granville, Boden; Monica Vinader
exception and I saw really bad (and
“ I know of a lot of people and businesses
damaging) behaviour from one lender.”
I am involved with have managed to take
advantage of CBILS and other Government
Richard Pennycook, Howdens
loan supports. It feels like it takes ages when
“ My experience with the banks was mixed.
it’s critical. But if you are a bigger business
The Bank of England was extremely
banks move quicker than they seem to
supportive alongside the Treasury and
when dealing with a smaller business. “
they provided fundamental support to
the economy. That followed through into
Geoffrey Cooper, AO World
commercial banks who generally have a
“ Two big things that were great were the
desire to support, but some were quicker
furlough scheme and the Bank of England
and more proactive than others. I think if
COVID-19 financing scheme, who gave
we compare to what the banks did in the
funding to businesses. Although AO didn’t
crisis of 08/09, the banks have been much
use these, they were pretty essential things
more positive this time. In a way that’s
business needed.”
because they’ve had the Government
support behind them.
Unattributed
“ They haven’t helped many businesses in
their hour of need and instead allowed
them to go to the wall.”
Unattributed
“ If you are in a P/E backed business,
JULIAN GRANVILLE
which by nature are typically highly Boden; Monica
leveraged, you had to be lucky to qualify Vinader
for the loan scheme. This was a vital flaw
in the Government’s thinking, given that SIMON BURKE
Blue Diamond
CBILS were designed to specifically Garden Centres
support businesses with working capital
requirements during this extraordinary time.” GODFREY DAVIS
Mulberry
Godfrey Davis, Mulberry GEOFFREY COOPER
AO World
“ They have been very supportive but have
used the opportunity to improve their
margins, which we think was opportunistic.”
RICHARD
PENNYCOOK
Howdens
PETER WILLIAMS
Superdry; Mister Spex
Gmbh; Sophia Webster
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